Real Estate Careers?

Question

Steve Milford · Answer

@Michael Yim

You're welcome. Let me know if you need any help along the way or want to brainstorm.

Michael Yim · Answer

@Steve Milford Thanks for taking the time to write these great tips!

Steve Milford · Answer

Tips - many apply to FT agents as well.

1. Know your learning style. Do you like active learning and the School of Hard Knocks or do you want to be trained in the classroom? And choose a brokerage to match. I like knowing something inside and out so I chose Hard Knocks. My mentor is still a phone call away. I get training from YouTube.

2. Figure out on paper what will make you different than 1,000s of other agents and then keep it handy as people will ask you. What is your business model? Mine is low-cost full-service, flexibility, and education. And then be willing to do what other agents won't. I show properties at night with a flashlight and on the fly. When someone tells me in conversation that they have to wait for access, I say "Do you have a property in mind? If we can get the ok, let's go look right now/in 30 mins etc."

3. Realize that perception and references are everything. My first client asked for references, and I gave him ones from my career. Likewise, in my area part-time (PT) agents are considered "Lesser", which is a perception embraced by FT agents to discount PT agents. Now here is the rub, an agent in my area is considered FT once they do a minimum of 6 sides a year. I did more than that my first full year...am I still a PT agent? When that question/objection was tossed at me I used to have to explain myself and it never went well. Now my easiest answer to that question/objection that answers this and with my business model is, "My multiple income streams allow me to charge a lower fee, each deal does not make or break me, and I have never had a client disappointed with my flexibility and availability. If you prefer, I can put my other income streams on hold, take you to the cleaners by charging the fee that other agents do or you can experience savings like my other clients do averaging $9,800. Either way your choice."

4. Embrace technology although understand it's limits. I.e. I know that if I can meet a client my closing ratio that client is 75%+. Most of my clients connected with me some way at least 5 times with direct mail, web site, email, phone calls answering questions, a then usually a meeting. The most helpful technology suites to me are Docusign, Dropbox, any computer with a secure connection (doesn't have to be mine-I've written many contracts from the local public library while traveling/out of cell service/no personal internet connection) and a general pdf editor/creator. I tell my clients...unless I am camping, I am available 7 days a week dawn to 11pm at not. But I put my phone down during meal times and activities with my family. No one asks me to sacrifice that time, and if they did, I wouldn't work with them.

5. Interview brokerages to find one that fits your business model regarding fees and costs and understand how market share plays a role in that. I.e. Larger firms spend more in marketing leading to brand recognition and busier agents can supply you with leftover leads yet does that justify the cost? The average agent makes $47k yet does that consider their costs? That is something you need to consider. I chose a smaller agency because I break-even before marketing/advertising costs with 1 deal per year. My ROI last year was 400%/roughly $75 per hour. It was not $47k but I am happy with my number because I don't want to spend more than 55 hours a week in activities that create income. Work life balance is important to me.

6. Test, test, test, and test some more in figuring out how to get the phone to ring and then find a cost you are comfortable with, as its just a cost of doing business. Your phone will ring off the hook with advertisers want your money. Find out what works for you. Find out what your ROI is for your systems..if it is above industry standard keep using it...below...stop doing it.

7. Find ways to personally engage, preferably in-person. This creates the best referral system out there and yes it takes time.

8. Last tip. Have fun! This is my passionate hobby which just happens to make money.

Michael Yim · Answer

Hey Jordan - Sounds like you and I have a lot in common. I'd love to chat and discuss real estate. Feel free to reach out if you want to have coffee at Caribou to talk real estate.

Stanley Parsley · Answer

this should be a wiz

you are an analysis

do you have a property where you live

if not start there

go look at properties, walk them see how much to rehab- take a guess for now

do 6 this week and look at putting one under contract

enjoy

Kenny Engel · Answer

Contractor, trades, loan officer, accountant etc. Basically anything where you'd find yourself hiring a person for their profession when building your team. Network with people, tell them what you're doing, and offer to work for them even as an apprentice.